A company can be liquidate in the UAE in two ways – voluntary liquidation and involuntary liquidation.
When it comes to voluntary company liquidation services in Dubai, the board of directors must meet first. Each member of the board of directors must agree to wind up the company and liquidate its assets. This resolution must be certified by a notary public, and the legal document must also name the company liquidation firm tasked with liquidating the company’s assets. This must be an approved company liquidator that offers company liquidation services in Dubai and the rest of the UAE.
The company liquidation services in Dubai firm must also agree in writing to the liquidation of the company that is being liquidated. A liquidation form is then submitted to the Department of Economic Development of the emirate where the company is located.
For example, if the company is located in Dubai, the relevant authority would be the Department of Economy and Tourism, Dubai. For Sharjah, it is the Sharjah Economic Development Department. In Abu Dhabi, it is the Abu Dhabi Department of Economic Development.
The decision to dissolve the firm must be published in an Arabic newspaper so that creditors can file their claims. The Department of Economic Development has a grace period of 45 days to settle all outstanding claims. All work visas, including residence visas for employees’ family members, must be canceled during this period. No Objection Certificates will subsequently be obtained from the Ministry of Labor and the General Directorate of Residency and Foreign Affairs Department.
Utility and communication bills should also be cleared and No Object Certificates obtained from service providers, such as DEWA in Dubai and du/Etisalat.
The government-approved company liquidator then submits a final audit report confirming that all outstanding debts have been settled to the satisfaction of creditors and that there are no further claims pending against the company. The Department of Economic Development then issues a Liquidation Certificate, stating that the company’s liquidation process has ended. With this, the company is dissolved for all legal and official purposes.
It is always recommended that all creditors are paid before the liquidation process begins, to avoid any potential delays. If you need help with a company liquidation in Dubai or elsewhere in the UAE, you should contact an approved liquidator.
Skyline is one of the approved liquidators in Dubai and can be contacted on +971 4 295 4459 for assistance with company liquidation in Dubai and the rest of the UAE.
Involuntary liquidation occurs when creditors approach the court to liquidate the company and its assets. A liquidator is appointed by the court, who liquidates the company’s assets and repays the creditors with the proceeds. With Company Liquidation Services in Dubai, a liquidator is appointed by the court, who liquidates the company’s assets and repays the creditors with the proceeds.
